Binance Struggles as Trump Policies Spark New Wave of Wealth Creation
Crypto exchange Binance is facing significant challenges in maintaining its wealth effect as other exchanges start to gain traction. In contrast, Trump's policies are seen as creating a new wave of wealth creation.
According to Zuo Ye Web3, more asset categories do not necessarily translate into stronger wealth effects for exchanges. The author points out that the recent struggles faced by Binance and Coinbase, two leading crypto exchanges, serve as evidence of this claim.
The article highlights how the growth in U.S. stocks has become a lifeline for Binance, but its main task is to overtake Hyperliquid's TradeXYZ. The author argues that whether an exchange becomes an all-in-one brokerage or goes all-in on-chain will determine its survival. However, this decision comes with significant risks and uncertainties.
The article also discusses the rise of Robinhood as a major player in the crypto space, which has led to increased competition for Binance. The author notes that while Coinbase's attempts to expand into Web3 have been unsuccessful, Robinhood's more native approach has allowed it to survive and thrive.